Irish airline Aer Lingus announces massive job cuts

Ireland's second-biggest airline, Aer Lingus, revealed its plans to axe as many as 676 jobs by the end of 2011 in an effort to save almost 100 million euros annually.

Apart from hacking jobs the carrier will also reduce the pay of employees who earn more than 35,000 euros per year.

Christoph Mueller, CEO of the Irish airline, said, "However, we must transform the business now to ensure that Aer Lingus has a business model for the long-term and can deliver value for all stakeholders."

Approximately 489 positions will be hacked from cabin crew, pilots as well as ground handling, while 187 job cuts will be made from head office plus support areas.

It may be noted here that only yesterday, British Airways said that it would cut about 1,700 cabin crew jobs plus freeze pay in order to control costs.

Aer Lingus reported a loss of 73.9 million euros for the first six months of 2009 as compared with a loss of 21.6 million euros previous year.

Company's revenue dropped to 555 million euros, down 12.2 per cent from a year earlier.

In the recent trading, shares in Aer Lingus gained 16 per cent.